Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Liquidity Ratios
- Analysis of Reportable Segments
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Total Asset Turnover since 2005
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Return on Invested Capital (ROIC)
Cigna Group, ROIC calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| ROIC3 | ||||||
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 NOPAT. See details »
2 Invested capital. See details »
3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit After Taxes (NOPAT)
- The net operating profit after taxes demonstrates a fluctuating trend over the five-year period. Starting at 9,227 million USD in 2020, there is a significant decline to 6,235 million USD in 2021. This is followed by a recovery to 7,303 million USD in 2022. However, the profit decreases again in 2023 to 4,831 million USD and remains relatively stable at 4,868 million USD in 2024. Overall, the NOPAT exhibits volatility with a downward tendency from the initial year to the last year observed.
- Invested Capital
- Invested capital conveys a gradual decreasing trend over the timeline. It begins at 93,748 million USD in 2020 and steadily declines with minor fluctuations to 90,679 million USD in 2021 and then to 85,650 million USD in 2022. It stabilizes somewhat in 2023 at 85,777 million USD before declining further to 81,638 million USD in 2024. The data reflects consistent efforts in capital management or reduction throughout the period.
- Return on Invested Capital (ROIC)
- The return on invested capital follows a generally downward trajectory with some intermittent recovery. It starts at 9.84% in 2020, drops sharply to 6.88% in 2021, then improves to 8.53% in 2022. Subsequently, it declines again to its lowest point of 5.63% in 2023, with a slight improvement to 5.96% in 2024. This pattern suggests challenges in maintaining profitability relative to invested capital, particularly after 2022.
- Summary
- The analyzed financial metrics indicate a period marked by volatility in profitability and a consistent reduction in invested capital. NOPAT shows significant fluctuations, with a notable decline after 2022. Invested capital decreases steadily, which might reflect strategic capital allocation or asset divestitures. ROIC movements mirror the changes in NOPAT and invested capital, indicating pressures on generating returns from the capital employed. The slight improvements observed in 2024 suggest modest stabilization but overall point to challenges in sustaining robust financial performance compared to the start of the period.
Decomposition of ROIC
Cigna Group, decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | = | × | × | ||||
| Dec 31, 2023 | = | × | × | ||||
| Dec 31, 2022 | = | × | × | ||||
| Dec 31, 2021 | = | × | × | ||||
| Dec 31, 2020 | = | × | × |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
- Operating Profit Margin (OPM)
- The operating profit margin shows a declining trend over the five-year period. It decreased significantly from 7.72% in 2020 to 2.75% in 2024, with particularly notable drops between 2021 and 2023. This indicates a reduction in the efficiency or profitability of core business operations over time.
- Turnover of Capital (TO)
- Capital turnover improved steadily each year, increasing from 1.7 in 2020 to 3.02 in 2024. This upward trend suggests enhanced efficiency in utilizing invested capital to generate revenue, with a marked acceleration in improvement in the last two years of the period.
- 1 – Effective Cash Tax Rate (CTR)
- This metric remained relatively stable, fluctuating slightly between 69.73% and 76.99% throughout the period. The highest rates were observed in 2021 and 2022 around 75–77%, followed by a decrease in 2023 to below 70%, and a slight increase again in 2024. This stability indicates consistent tax impact on the company's cash flows during these years.
- Return on Invested Capital (ROIC)
- Return on invested capital displays a declining pattern similar to operating profit margin, starting at 9.84% in 2020 and dropping to 5.96% in 2024. There is a sharp decline between 2020 and 2021, a partial recovery in 2022, and subsequent decreases thereafter. This decline suggests reduced overall effectiveness in generating returns from invested capital over the term analyzed.
Operating Profit Margin (OPM)
Cigna Group, OPM calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Revenues from external customers | ||||||
| Profitability Ratio | ||||||
| OPM3 | ||||||
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
OPM = 100 × NOPBT ÷ Revenues from external customers
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net operating profit before taxes (NOPBT)
- The net operating profit before taxes demonstrates a fluctuating trend over the five-year period. It peaked at 12,291 million USD in 2020, followed by a significant decline to 8,099 million USD in 2021. There was a partial recovery in 2022 with an increase to 9,666 million USD. However, the figure declined again in subsequent years, reaching 6,928 million USD in 2023 and further decreasing slightly to 6,769 million USD by the end of 2024. Overall, the trend indicates challenges in sustaining profitability before taxes after 2020.
- Revenues from external customers
- The revenues from external customers showed a consistent upward trajectory throughout the period. Starting at 159,157 million USD in 2020, revenues increased steadily each year, reaching 172,529 million USD in 2021, 179,361 million USD in 2022, and 194,099 million USD in 2023. The most notable growth occurred in 2024 with revenues surging to 246,148 million USD. This significant increase suggests enhanced sales or market expansion despite the challenges reflected in profitability.
- Operating profit margin (OPM)
- The operating profit margin exhibited a downward trend across the years. Beginning at a relatively healthy 7.72% in 2020, it sharply dropped to 4.69% in 2021. After a slight improvement to 5.39% in 2022, the margin continued to decline to 3.57% in 2023 and further to 2.75% in 2024. This pattern indicates a decrease in operational efficiency or increased costs relative to revenues, suggesting that despite revenue growth, profitability from operations is being compressed.
Turnover of Capital (TO)
Cigna Group, TO calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues from external customers | ||||||
| Invested capital1 | ||||||
| Efficiency Ratio | ||||||
| TO2 | ||||||
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 Invested capital. See details »
2 2024 Calculation
TO = Revenues from external customers ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
- Revenues from External Customers
- Revenues exhibited a steady upward trajectory throughout the observed period. Starting at 159,157 million USD in 2020, there was consistent growth each year, culminating in a significant increase to 246,148 million USD by the end of 2024. The largest annual increase occurred between 2023 and 2024, indicating accelerated revenue growth in the final year.
- Invested Capital
- Invested capital showed a gradual decline over the five-year span. Beginning at 93,748 million USD in 2020, it experienced a consistent decrease, reaching 81,638 million USD by 2024. This downward trend suggests a possible strategic reduction in invested assets or increased efficiency in capital utilization over time.
- Turnover of Capital (TO)
- The turnover of capital ratio demonstrated a clear upward trend, improving from 1.7 in 2020 to 3.02 in 2024. This indicates that the company increasingly generated more revenue per unit of invested capital, reflecting enhanced capital efficiency. The most pronounced improvement occurred in the last year, paralleling the substantial revenue growth and continued reduction in invested capital.
Effective Cash Tax Rate (CTR)
Cigna Group, CTR calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Tax Rate | ||||||
| CTR3 | ||||||
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
- Cash Operating Taxes
- The amount of cash operating taxes shows a fluctuating pattern over the five-year period. It decreased significantly from 3,064 million USD in 2020 to 1,864 million USD in 2021. Following this, it increased to 2,363 million USD in 2022, before declining again in subsequent years to 2,097 million USD in 2023 and further down to 1,901 million USD in 2024. This indicates some variability and possible influence from changes in taxable income or tax regulations.
- Net Operating Profit Before Taxes (NOPBT)
- NOPBT exhibits a declining trend with some fluctuations. It starts at 12,291 million USD in 2020 and falls sharply to 8,099 million USD in 2021. A partial recovery occurs in 2022, increasing to 9,666 million USD, followed by a decrease to 6,928 million USD in 2023 and a slight further decline to 6,769 million USD in 2024. Overall, the data suggest weakening operational profitability before tax over the analyzed period.
- Effective Cash Tax Rate (CTR)
- The effective cash tax rate shows relatively moderate variation, mostly staying within a range of approximately 23% to 30%. It decreased from 24.93% in 2020 to 23.01% in 2021, then increased again to 24.44% in 2022. A notable rise occurs in 2023 to 30.27%, followed by a slight reduction to 28.08% in 2024. This upward shift in tax rate in later years may have contributed to the declining net operating profit after tax considerations.